Blockchain analysis leader Chainalysis has acquired Alterya, a generative AI-powered fraud detection startup, to bolster its fraud prevention capabilities. Alterya, based in Tel Aviv, monitors over $8 billion in monthly transactions across cryptocurrency and fiat platforms for major exchanges like Binance, Coinbase, and Block, as well as other financial institutions.
While the deal’s terms remain undisclosed, industry reports suggest a price tag of approximately $150 million. This acquisition aims to provide Chainalysis with robust real-time fraud prevention tools, benefiting exchanges, blockchains, and wallet providers. By leveraging Alterya’s advanced technology, Chainalysis will enhance fraud detection during Know Your Customer (KYC) procedures and safeguard payment systems.
Alterya’s solutions have already reduced fraud by 60% for top crypto exchanges, lowered scam-related disputes, and increased operational efficiency. In addition to serving private sector clients, Chainalysis plans to market Alterya’s capabilities to government agencies, offering insights into emerging fraud schemes like pig butchering scams.
The integration also allows Chainalysis to expand fraud monitoring on fiat payment systems, offering financial services firms a means to identify fraudulent activities before they transition into crypto. As stated by Chainalysis, “We will continue to build upon Alterya’s collection of fraud identifiers on fiat payment rails to provide insights to financial services firms on the fiat accounts where customers are losing money to fraud — often an early red flag before funds move into crypto.”
This acquisition underscores Chainalysis’s commitment to creating a safer digital finance ecosystem by addressing fraud across both fiat and crypto domains.